(Adds comments from competition law experts, background, union
and political reaction)

By Euan Rocha

TORONTO Oct 6 (Reuters) - Postmedia Network said
on Monday it will buy Quebecor Inc's Sun Media
newspaper assets for C$316 million ($282 million) in a deal that
would give a single publisher control of most of the major
English-language dailies in Canada.

The agreement, likely to be closely scrutinized by antitrust
authorities, would transform the country's newspaper landscape,
making Postmedia the owner of competing major local dailies in
cities such as Ottawa, Edmonton and Calgary.

The deal would bring some 175 newspapers and publications,
including the Sun's flagship assets - the Ottawa , Toronto,
Winnipeg, Edmonton and Calgary Sun newspapers - as well as the
London (Ontario) Free Press into the Postmedia fold. Postmedia
said the deal will position it to better compete with
foreign-based digital offerings.

Postmedia, already home to the National Post, the Vancouver
Sun, Calgary Herald, Montreal Gazette and other Canadian
publications, would also gain control of the 24 Hours commuter
dailies in Toronto and Vancouver, along with a host of other
community dailies and weeklies.

Despite the huge ownership concentration resulting from the
deal, analysts downplayed competition concerns, noting there is
proof of increased competition in the business from online and
free daily operators.